Energy Loan Program

November 01, 2017


Note: FY2016 (2.75% interest rate) loan cycle is now open. Loan applications submitted are being accepted from September 1, 2015 to November 30, 2015.

The Missouri Energy Loan Program, administered by the Division of Energy in the Missouri Department of Economic Development (DED), is available for energy efficiency and renewable energy projects for public and governmental buildings and structures. Eligible recipients include public schools (K-12), public/private colleges and universities, city/county governments, public water and wastewater treatment facilities, and public/private non-profit hospitals.

Loan amounts are based on projected energy savings from energy efficiency upgrades, which result in monetary savings that are used to repay the loan. For Fiscal Year (FY) 2016 financing is set at a 2.75% interest rate and 1% loan origination fee. Repayment schedules are determined on an individual project basis, but not to exceed 10 years. Loans under this program are determined on a competitive basis according to payback period.

In FY2014, $5,000,000 in loan funding was available, and in FY2015, $7,500,000 in loan funding was available. Loans are available in amounts from $10,000 to $1,000,000 per applicant.


The Missouri Department of Economic Development’s Division of Energy has provided the energy loans from petroleum violation escrow funds and bonds since 1989. Since the program's inception, loans totaling over $89 million have been made through this program, resulting in an estimated cumulative savings of $167 million. The interest rates for energy loan financing are generally lower than the market interest rates. Loan recipients repay the loans with money saved on energy costs as a result of implementing energy efficiency and renewable energy projects. An energy saving loan is not defined as debt for public schools and local governments and therefore does not count against debt limits or require a public vote or bond issuance.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Missouri
Incentive Type: Loan Program
Web Site:
Administrator: Missouri Department of Economic Development
Start Date:
Eligible Renewable/Other Technologies:
  • Solar - Passive
  • Solar Water Heat
  • Solar Space Heat
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Combined Heat & Power
  • Lighting
  • Chillers
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Programmable Thermostats
  • Building Insulation
  • Windows
  • Motors
  • Custom/Others pending approval
  • Other EE
  • Wind (Small)
Maximum Loan: $1,000,000
Loan Term: up to 10 years
Interest Rate: 2.75%


Name: 640.651 R.S. Mo., et seq.
Effective Date: 1989


Name: Missouri Department of Economic Development Division of Energy
Organization: Missouri Department of Economic Development,
Address: 1101 Riverside Drive
Jefferson City MO 65102
Phone: (573) 751-2254

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.